Ghanaian President, Nana Akufo-Addo, and his ministers have cut their salaries by 30 percent, under measures to reduce spending.
The salary cut became necessary as the country struggles with higher fuel costs resulting from the Ukraine crisis as well as stalled progress on a new tax, the government said on Thursday.
Finance Minister, Ken Ofori-Atta announced that foreign travel by government appointees, except for critical missions, and the purchase of imported vehicles had been suspended with immediate effect.
He said the government hoped to save around $400 million through the measures.
Global fuel prices have hit all-time highs because of the Russia-Ukraine war, driving up costs of living and transport in a way that has hit West African countries like Ghana hard.
Ghana’s government is also struggling to raise domestic revenue as gridlock in parliament since last year has stalled the passage of a controversial 1.75-per cent E-Levy tax aimed at bringing in additional funds AFP reports.
Other measures include a 50% cut in fuel coupon allocations for all political appointees and heads of government institutions.
The main opposition National Democratic Congress (NDC) said the decisions were inadequate.
Recent data published by the Bank of Ghana indicate that the country’s debt to GDP was 80.1 percent at the end of December 2021.
